A month into the US real-estate market recovery, investors are still looking for bargains, according to a new report.
In the past month, the S&P 500 has fallen 1.5% as investors are feeling squeezed, and US property prices are expected to remain sluggish for years to come.
“The market is still on the ropes,” said Doug McLeod, chief investment officer at PinnacleRealty.com.
“It is not a good environment for new investors to enter the market, but the upside is there.”
Read more”The fundamentals are good, but we are in the midst of a slow recovery,” said Michael Balsamo, managing director at The Balsam Group.
Read moreThe average price of homes in the US rose just 1.1% in February, according a recent report from RealClearMarkets.com, and is now down nearly 10% from a year ago.
The S&s has lost more than 50% of its value over the past year, while the median home price in the country has dropped over 30%.
“The average homeowner has lost about 10% of their value in the last year,” said Balsamic.
“They have seen all the house price gains, but their mortgage payments have dropped by about half a million dollars.”
The housing market is in the grip of a “slow recovery”, according to McLeod.
“There is not enough demand, and the price is not rising,” he said.
The S &M index of home prices has fallen just 1% in the past two months, but that is expected to stay low until 2021, according the latest report from Zillow.
“I don’t see much downside, I don’t think the market is going to fall off quite as fast as some other areas,” said McLeod.
“Read more”The US housing market was built on a very strong foundation, but now is just not there,” said Mark Zandi, chief economist at Moody’s Analytics.
According to Zandi: “We expect the S &s to continue to fall, and in the end it could very well come back to where it was before.
It is still too early to tell if the recovery will last.””
It is very difficult to tell when a recovery will start and end,” he added.”
It might be a while before the recovery actually starts.
But it is not looking likely.
“For more on the US housing crisis, watch the BBC’s ‘The World’ on Sunday at 8.30pm and on BBC iPlayer from Sunday 7th February at 11:30pm.